- Lucid’s CEO stated Gravity manufacturing is “not the place we wish to be.”
- The EV startup’s first SUV and second mannequin ever is crucial to its progress plans.
- Provide chain points, together with a constrained provide of Chinese language magnets, have been in charge. The automaker says manufacturing ought to speed up within the second half of 2025.
Lucid Motors reported second-quarter earnings on Tuesday and gave an replace on manufacturing of its crucial Gravity SUV. The EV startup’s second mannequin is ramping up extra slowly than the corporate would’ve favored, interim CEO Marc Winterhoff stated on a convention name with buyers.
“I really feel that you will need to acknowledge that we’re not the place we wish to be with Lucid Gravity manufacturing relative to our goal at this level within the yr,” Winterhoff stated. “Nevertheless, our group has been working very arduous all yr to deal with bottlenecks in our provide chain and enhance manufacturing effectivity. I’m completely satisfied to say that we now have overcome most of those points and are starting to ramp up Lucid Gravity manufacturing.”
Winterhoff chalked the sluggish output as much as two foremost elements: suppliers that did not have sufficient capability and the restricted provide of magnets from China. In response to President Trump’s chaotic commerce battle, China in April restricted exports of uncommon earth magnets, that are essential to automobile manufacturing. They go into all kinds of digital motors, together with people who make EVs go.
The CEO stated Lucid was capable of supply and swap in several magnets, and that it has secured sufficient magnets to help manufacturing by means of the top of the yr. The automaker revised its annual manufacturing steering from 20,000 models to 18,000-20,000.
Lucid reported income of $259 million for the quarter and an adjusted EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) lack of $632 million. Its shares slid round 9% after the market shut.
Picture by: Tim Levin/InsideEVs
No automobile firm is having a simple time with the Trump administration’s shifting insurance policies and their fallout. However the problem is amplified for startups simply making an attempt to get off the bottom.
Quite a bit is driving on how rapidly and efficiently Lucid can the Gravity out to the general public. As its first SUV, the Gravity is essential to Lucid’s progress plans and may drive considerably greater gross sales than the present Air sedan. That is essential for a corporation that’s nonetheless burning money each quarter because it builds manufacturing scale.
The automaker delivered the primary few Gravity SUVs to individuals near the corporate on the finish of final yr. Earlier this yr, the corporate stated deliveries would begin in full pressure in late April. Lucid would not escape model-specific supply figures, however third occasion knowledge means that the overwhelming majority of its U.S. gross sales thus far this yr have been Airs.
Winterhoff stated Lucid will “considerably improve manufacturing within the second half of the yr.” He additionally stated Lucid remains to be on monitor to begin constructing its roughly $50,000 midsize SUV in 2026, and that it’s going to reveal the mannequin subsequent yr.
Fellow EV upstart Rivian additionally reported earnings on Tuesday that put the impression of Trump’s coverage shifts into focus. It stated it expects tariffs so as to add a “couple thousand {dollars}” of value to every R1S and R1T it sells this yr. With federal gas financial system laws basically neutralized by Republicans’ One Massive Stunning Invoice Act, Rivian now expects gross sales of regulatory credit to different automakers to dry up in the remainder of 2025, resulting in a much bigger annual loss than it beforehand guided.
Contact the writer: Tim.Levin@InsideEVs.com
